Finance Minister Ken Ofori-Atta has disclosed that the World Bank has agreed to commit $250 million to support the Ghana Stability Fund.
This is part of the donor funding expected to come in to support the $1.5 billion dollar fund aimed at assisting banks and other players in the financial sector affected by the Domestic Debt Exchange Programme.
Mr. Ofori-Atta disclosed this at a News Conference in Washington DC to wrap up Ghana’s engagement at the just ended Annual IMF/World Bank spring meetings.
“We need about $750 million immediately. The rest of the funding will provided by government”.
He stated that Ghana is expecting the African Development Bank to also come on board with some financial support for the fund.
“We are still in discussion with our development partners to come on board to support this initiative”, he said.
The Stability Fund
Mr. Ofori-Atta announced the establishment of the Ghana Stability Fund to support players in the financial sector hit by the shocks of the Debt Exchange Programme.
The Fund will deal with issues of solvency, as well as providing the needed liquidity support to financial institutions that needs some support to stay in business.
The establishment of the Ghana Stability Fund is one of the measures to help deal with the expected challenges that will hit the financial sector due to the Domestic Debt Exchange Programme.